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MainStreet Bancshares Inc (MNSB)
NASDAQ:MNSB
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MainStreet Bancshares
(NASDAQ:MNSB)
Rating:61Neutral
Price Target:―
MainStreet Bancshares (MNSB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$149.46M
Dividend Yield2.06%
Average Volume (3M)24.85K
Price to Earnings (P/E)14.4
Beta (1Y)0.57
Revenue Growth5.38%
EPS Growth-165.79%
CountryUS
Employees182
SectorFinancial
Sector Strength83
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.25
Shares Outstanding7,704,037
10 Day Avg. Volume23,881
30 Day Avg. Volume24,847
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.69
Price to Sales (P/S)0.00
P/FCF Ratio112.54
Enterprise Value/Market Cap1.46
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit2.28
Enterprise Value/Ebitda1.64
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
MainStreet Bancshares Business Overview & Revenue Model
Company DescriptionMainStreet Bancshares (MNSB) is a financial holding company that primarily operates through its subsidiary, MainStreet Bank. The company provides a wide range of financial services including commercial banking, personal banking, and mortgage lending. It serves individuals, small to medium-sized businesses, and commercial entities in its regional market area, offering products such as checking and savings accounts, loans, and cash management services.
How the Company Makes MoneyMainStreet Bancshares generates revenue primarily through interest income earned on its loan portfolio, which includes commercial loans, residential mortgages, and consumer loans. Additional revenue streams include fees and service charges associated with deposit accounts and transaction services. The company also earns money through investment securities and gains from the sale of loans. Partnerships with financial technology companies and participation in local economic development initiatives may enhance its earning capacity by expanding its service offerings and customer base.
MainStreet Bancshares Financial Statement Overview
Summary
MainStreet Bancshares shows strong revenue growth and a robust balance sheet with no debt, but the negative net income and decreased operating cash flow are concerning. The company needs to focus on improving profitability.Income Statement
MainStreet Bancshares demonstrated a mixed performance in its income statement. The gross profit margin remains strong, but the net profit margin has significantly deteriorated, turning negative in the latest year. Revenue growth has been positive over the years, but the recent negative net income raises concerns about profitability. The company needs to address the downturn in net income to improve its financial health.65
Positive
Balance Sheet
The balance sheet of MainStreet Bancshares is robust, with a strong equity position. The debt-to-equity ratio is excellent, as the company currently reports no total debt. The equity ratio is healthy, indicating a well-capitalized structure. However, the decline in stockholders' equity over the last year is a point to watch closely.78
Positive
Cash Flow
Cash flow analysis shows a decrease in operating cash flow compared to the previous year, which is a concern. However, the company maintains positive free cash flow, indicating an ability to generate cash despite challenges. The operating cash flow to net income ratio has worsened due to the negative net income, highlighting a need for improving operational efficiency.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 65.83M | 124.12M | 74.84M | 59.65M | 53.47M | Gross Profit |
| 65.83M | 122.99M | 72.50M | 57.61M | 51.58M | EBIT |
| -62.77M | 119.00M | 47.22M | 27.96M | 19.56M | EBITDA |
| 0.00 | 0.00 | 79.20M | 60.59M | 59.18M | Net Income Common Stockholders |
| -9.98M | 26.59M | 26.67M | 22.17M | 15.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 103.30M | 114.51M | 111.56M | 161.74M | 223.35M | Total Assets |
| 2.23B | 2.04B | 1.93B | 1.65B | 1.64B | Total Debt |
| 73.04M | 72.64M | 172.25M | 29.29M | 14.83M | Net Debt |
| 25.49M | 19.06M | 123.31M | -32.53M | -61.10M | Total Liabilities |
| 2.02B | 1.81B | 1.73B | 29.29M | 14.83M | Stockholders Equity |
| 207.99M | 221.52M | 198.28M | 188.79M | 167.66M |
| Cash Flow | Free Cash Flow | |||
| 8.95M | 25.63M | 25.76M | 56.09M | 15.73M | Operating Cash Flow |
| 14.74M | 31.63M | 33.54M | 60.39M | 17.02M | Investing Cash Flow |
| -122.28M | -130.75M | -228.74M | -60.52M | -313.79M | Financing Cash Flow |
| 200.73M | 83.03M | 232.59M | -14.20M | 339.45M |
MainStreet Bancshares Technical Analysis
Positive
19.40
Price Trends
17.70
Positive
17.16
Positive
17.40
Positive
Market Momentum
0.55
Positive
59.38
Neutral
56.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNSB, the sentiment is Positive. The current price of 19.4 is above the 20-day moving average (MA) of 19.27, above the 50-day MA of 17.70, and above the 200-day MA of 17.40, indicating a bullish trend. The MACD of 0.55 indicates Positive momentum. The RSI at 59.38 is Neutral, neither overbought nor oversold. The STOCH value of 56.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MNSB.
MainStreet Bancshares Risk Analysis
MainStreet Bancshares disclosed 43 risk factors in its most recent earnings report. MainStreet Bancshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may be affected by possible regulatory reform and legislation. Q4, 2024
2.
Our participation in the New Markets Tax Credit ("NMTC") Program entails certain risks. Q4, 2024
3.
We may be adversely affected by changes in federal and state tax laws and regulations. Q4, 2024
MainStreet Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $125.67M | 11.36 | 8.80% | 2.93% | 7.38% | -3.85% | |
64 Neutral | $115.71M | 20.31 | 4.84% | ― | 8.74% | -1.73% | |
64 Neutral | $12.64B | 9.78 | 7.67% | 17015.08% | 12.23% | -6.02% | |
61 Neutral | $149.46M | 14.43 | -5.01% | 2.06% | 5.38% | -165.79% | |
60 Neutral | $121.45M | 24.87 | 3.11% | 1.38% | 9.61% | 29.84% | |
60 Neutral | $138.42M | 15.10 | 6.82% | 4.29% | 13.55% | 3.11% |
* Financial Sector Average
Performance Comparison
MNSB
MainStreet Bancshares
19.40
2.96
18.00%
RVSB
Riverview Bancorp
5.79
2.06
55.23%
SBFG
SB Financial Group
19.26
5.50
39.97%
AFBI
Affinity Bancshares
18.32
2.38
14.93%
RMBI
Richmond Mutual Bancorporation
13.30
1.92
16.87%
MainStreet Bancshares Earnings Call Summary
Earnings Call Date:Apr 21, 2025
(Q1-2025)
| % Change Since: 18.51%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a strong start to 2025 with improvements in net interest margin and a reduction in non-performing loans. However, the discontinuation of the Avenue initiative and the nominal loan growth due to paused CRE lending represent significant challenges. Overall, the bank is focusing on core operations and cost reductions to drive shareholder value.Q1-2025 Updates
Positive Updates
Net Interest Margin Improvement
The bank's net interest margin increased by 34 basis points from the previous quarter to 3.3%, reflecting effective balance sheet management.
Reduction in Non-Performing Loans
Non-performing loans are expected to decrease from $21.7 million to $10.5 million due to a court-approved payoff.
Strong Start to 2025
Earnings per common share were $0.25, with a return on average assets of 0.46% and a return on average equity of 4.78%.
Deposit Portfolio Growth
Non-interest-bearing and low-cost transactional deposits increased by $74 million during the quarter.
Cost Reduction Strategy
The bank anticipates a 12.5% decrease in operating expenses during the second quarter as part of its expense reduction plan.
Negative Updates
Discontinuation of Avenue Initiative
The Avenue banking-as-a-service initiative was discontinued due to misalignment with strategic priorities and increasing costs.
Nominal Loan Growth
The loan portfolio experienced nominal net growth of $1 million quarter-on-quarter, reflecting a cautious approach in the current environment.
Increase in Delinquency Numbers
There was an increase in the 30 to 89 day delinquency figures during the quarter.
CRE Lending Paused
The bank has paused investor CRE lending due to political and economic instability, impacting growth potential.
Company Guidance
During the earnings call, MainStreet Bancshares Inc. provided several key metrics and strategic updates. The net interest margin increased by 34 basis points from the previous quarter to 3.3%, reflecting positive balance sheet management. Non-performing loans remained steady at $21.7 million, with expectations of reducing this to $10.5 million following a court-approved payoff in June. The company reported earnings per share of $0.25, a return on average assets of 0.46%, and a return on average equity of 4.78%. The bank decided to discontinue its Avenue banking-as-a-service initiative to focus on the Core Bank, which aims to drive shareholder value. MainStreet Bancshares is also focusing on reducing its loan-to-deposit ratio, which stands at 96%, by managing its liquidity and funding sources effectively. Cost-cutting measures are expected to yield a 12.5% decrease in operating expenses during the second quarter, with further reductions anticipated throughout the year.MainStreet Bancshares Corporate Events
Business Operations and StrategyFinancial Disclosures
MainStreet Bancshares Reports Q1 Net Income Growth
Positive
Apr 21, 2025
On April 21, 2025, MainStreet Bancshares reported a first quarter net income of $2.5 million, with a net interest margin increase to 3.30%. The company maintained strong asset quality and capital, with total deposits at $1.9 billion and a loan-to-deposit ratio of 96%. Nonperforming loans remained stable, and a successful resolution is expected to pay off $11.2 million in the second quarter. The company decided to halt its Avenu technology initiative to focus on core banking operations.
Spark’s Take on MNSB Stock
According to Spark, TipRanks’ AI Analyst, MNSB is a Neutral.
MainStreet Bancshares’ overall performance reflects mixed signals. Strengths include a robust balance sheet, core deposit growth, and strategic initiatives in the cannabis sector. However, significant challenges like negative net income, high deposit costs, and a negative P/E ratio weigh on the score. The technical indicators are neutral to slightly bearish, and the valuation is affected by recent financial losses.
To see Spark’s full report on MNSB stock, click here.
Financial Disclosures
MainStreet Bancshares Announces Q1 Earnings Call April 21
Neutral
Apr 7, 2025
MainStreet Bancshares, Inc. announced it will hold a virtual webcast and quarterly earnings conference call on April 21, 2025, to discuss first quarter results and recent activities. This event provides an opportunity for stakeholders to gain insights into the company’s performance and strategic direction.
Spark’s Take on MNSB Stock
According to Spark, TipRanks’ AI Analyst, MNSB is a Neutral.
MainStreet Bancshares faces significant challenges with a recent net loss and high deposit costs. Despite a strong balance sheet and strategic initiatives like the cannabis payment solution, profitability concerns weigh heavily on the stock’s outlook.
To see Spark’s full report on MNSB stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.